EMA 34 Crossover with Break-Even Stop and 10R Target
Summary
The document describes a long-only trend-following system that enters when the close crosses above the 34-period exponential moving average. It sets the initial stop at the prior candle's low and defines risk as the distance from entry to that stop. The profit target is ten times that risk distance. If the close advances by three times the initial risk, the stop moves to the entry price; the position closes when the stop or target is reached. The source uses the full account equity as the order sizing basis.
The published BTC/USDT futures settings cover a one-year period, but no backtest performance statistics are reported. The document itself flags possible whipsaws in sideways markets, gaps through stops, and sensitivity to the chosen moving-average and reward thresholds. A large profit target may be reached infrequently. Its break-even rule protects only after the trigger is reached, and the code’s candle-based checks do not establish real execution prices or costs.
Key ideas
- A long entry occurs when price crosses above the 34-period EMA.
- The initial stop is placed at the previous candle's low, and the target is ten times the initial risk distance.
- After price advances by three times the initial risk, the stop moves to entry.
- Sideways conditions, gaps, parameter sensitivity, and a distant profit target are stated limitations.
- The published test window includes no reported performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.